|« Remember Your Advantages||Advertising Choices »|
Capturing Affluent Customers Gets Harder
Network World posted this article which says that shoppers who use iPads spend more than others.
On the surface that seems insightful I suppose, but it occurs to me that shoppers who have iPads have already spent an extraordinary amount of money on a tablet computer thus demonstrating that they are affluent enough, and free-spending enough, to spend more.
It's a little like saying that people who drive to the store in Porsches spend more than people who drive to the store in Toyotas. Yes, well...they apparently have more more money to spend.
That said, I absolutely believe, and have said for quite some time, that any retailer who doesn't take advantage of the proliferation of mobile devices is going to be in trouble. Already Amazon and others are leaping to deploy mobile shopping apps that allow users to scan bar codes and even look up products via image mapping (take a photo of the package and the app will try to figure out what the product is) to do product research, price matching and, critically, even online shopping.
Worst nightmare? Customer in your store picks up a product, scans the barcode with their iPhone and discovers they can buy it online 50% cheaper than you're selling it for. They place their online order (with free shipping, because they're a "Gold" member) and walk out of your store without spending a dime. Your store has just been converted into a free catalog for somebody else.
People have long said that Walmart was the greatest enemy of the Mom & Pop store. They're not. Amazon.com is.
Brick and mortar retailers, including Walmart, now have to step up their game. They have to be price competitive, AND provide a great shopping experience AND be more convenient than having UPS deliver the product right to the customer's doorstep.